«

»

Mature Age Worker Tax Offset Abolished

The mature age worker tax offset (MAWTO) will be abolished from 1 July 2014. This measure is estimated to have a gain to revenue of $760m over the forward estimates period.

A 2012/13 Budget measure began the phase out of the MAWTO from the 2012/13 income year, limiting it to taxpayers born before 1 July 1957.

The government considers that encouraging mature age workers to participate in the workforce can be achieved more effectively through direct payments or incentives. Savings from this measure will be redirected to the government’s expanded seniors employment incentive payment called Restart to support mature age job seekers in re-entering the workforce. Under that measure, from 1 July 2014, a payment of up to $10,000 will be available to employers who hire a mature aged job seeker, aged 50 years or over who has been receiving income support for at least six months.

Source: Budget Paper No 2, p 14.